(Insurer Entitled to Maintain
Subrogation Action Against Subcontractors for Reimbursement of
Defense Costs Based on Indemnity Clauses in Contracts with
Developer/General Contractor)
(August 2020) - In Pulte Home Corp.
v. CBR Electric, Inc., 50 Cal.App.5th 216 (June 10, 2020), the
California Court of Appeal reversed the trial court's entry of
judgment in favor of six subcontractors with respect to an
equitable subrogation lawsuit filed by St. Paul Mercury Insurance
Company ("St. Paul"). St. Paul filed the lawsuit after
defending Pulte Home Corp. ("Pulte") against two
construction defect lawsuits. The lawsuit contended that St. Paul
was entitled to seek recovery of defense costs incurred on behalf
of Pulte based on equitable subrogation. St. Paul relied on the
indemnity clauses in each of the subcontracts, and argued that the
subcontractors had breached their contracts with Pulte. As such,
each subcontractor was obligated to pay an equitable share of the
defense of
